A new mobile phone service that supports both GSM and CDMA networks is a highlight at the ongoing China Telecommunication Show in Shanghai. As the country's first telecom operator running both systems, China Unicom is pinning the hope of revitalizing its business on this cutting edge technology. 

On display at China Unicom's stands are three mobile phones packed with the new service. Looking like ordinary handsets, they offer the valuable function of being able to use both the networks in China.

The country's mobile market is dominated by two systems, the traditional Global System for Mobile Communication, better known as GSM, and Code Division Multiple Access, known as CDMA. The two systems, promoted by different telecom operators, China Mobile and China Unicom, are independent of each other and switching between them is impossible. China Unicom's invention of their new service may make this inconvenience part of history.

With two SIM card slots, one for GSM and the other for CDMA, the phone can have two numbers, one for each network, and allow users to move from network to the other automatically.

A China Unicom promotion person demonstrates how it works. Once the phone is turned on, the screen shows two network options, and a simple click on the keyboard switches between them.

Many countries only have one type of mobile system. For example, Japan and South Korea run CDMA, while Europe uses GSM, so for Chinese subscribers traveling abroad, the new service could enable them to send and receive phone calls regardless of the country, and avoid paying roaming fees by having to use different numbers in different locations.

The manager from China Unicom said that the models on display are only samples, and as negotiations with potential dual-mode phone manufacturers are still going on, there is no further information on the market prospects.

The Ministry of Information Industry has announced that the number of mobile phone subscribers in China topped 300 million at the end of May, more than the population of the United States. And another 60 million more are expected to register this year. So despite Unicom's low profile on its new technology, the latest move is widely considered a milestone for its business revival.

There are already rumors that the first production of 500,000 handsets from Motorola, LG and Samsung will hit the shelves around the middle of next month in Beijing, Shanghai and Guangzhou, and that the prices may go up to 4,000 yuan (US$483), almost triple the average tag of normal handsets. So, as the only dual network service operator, Unicom is sure its on to a winner!

(CRI June 25, 2004)